Sonoco to increase prices for paperboard tubes and cores

Sonoco, Hartsville, South Carolina, has announced that it will raise the price for its paperboard tubes and cores by a minimum of 6 percent in the United States and Canada, effective with shipments beginning July 16, 2018.

Sonoco cited continuing increases in uncoated recycled paperboard (URB), which the company recently announced it would raise prices for by $50 per ton in the U.S. and Canada, effective with shipments beginning July 2, 2018. The company also cites high costs in transportation as another factor for the price hike.

“The price increase is necessary due to ongoing increases in uncoated recycled paperboard (URB), the largest input cost for tubes and cores,” says Doug Schwartz, division vice president of sales and marketing at Sonoco. “URB demand remains strong and the marketplace is extremely tight, with operating rates pushing 100 percent. In addition, the rising cost of transportation remains a headwind due to lack of capacity linked to recently imposed driver regulations. As a result, Sonoco will be implementing a new policy of selling certain large diameter tubes that have less space utilization yields at FOB (free on board) from our operations.”

Sonoco says it is one of the largest integrated manufacturers of URB in the U.S. and Canada, producing more than 1 million tons annually from 11 mills.